Question 1

a)The managing director of Airedale Sdn Bhd has approached your firm and requested a second

opinion on the auditor's report which its current auditors are proposing to give on the financial

statements for the year ended 31 July 20X7. The proposed auditor's report expresses an

adverse opinion due to disagreement over the accounting policies adopted in the financial

statements.

Requirement:

Identify the ethical issues that may arise for your firm and state, with reasons, how your firm

should deal with the request